India boosts LPG output over 10% to curb import risk

India is increasing domestic LPG production by more than 10 percent to offset supply risks from renewed US‑Iran attacks on the Strait of Hormuz, officials said.

Refiners plan 10% boost

Officials said shipments through the Strait have become less reliable after the latest attacks, and that domestic consumption has fallen since the war began, easing immediate pressure on inventories. The statement did not provide a detailed week‑by‑week production timetable or specific cargo volumes to be cut from imports.

The shift is intended to meet household cooking‑gas demand while lowering exposure to shipping disruptions and insurance costs for Gulf cargoes, officials said. Traders and refiners will watch refinery utilisation and stock builds for signs of how much Gulf supply India withdraws from the market.

Officials said they aim to have the additional capacity phased in by October 15, 2026, and will report progress at regular industry briefings. That timeline is an internal target and has not been independently confirmed.

Refiners said local plants and state firms will expand runs and optimise bottlenecks to add the capacity. The companies described the increase as aimed at reducing dependence on seaborne cargoes that transit the Hormuz chokepoint.